An increase in the capital stock shifts
a) short-run aggregate-supply curve to the left and long-run aggregate-supply curve to the right.
b) short-run aggregate-supply curve to the right but does not shift long-run aggregate-supply curve.
c) long-run aggregate-supply curve to the right but does not shift short-run aggregate-supply curve.
d) both short-run and long-run aggregate-supply curve to the right.
Ans: d) both short-run and long-run aggregate-supply curve to the right.
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For a perfectly competitive firm, which of the following is not true at profit maximization?
A) Marginal revenue equals marginal cost. B) Price equals marginal cost. C) Market price is greater than marginal cost. D) Total revenue minus total cost is maximized.
A bank's reserve ratio is 8 percent and the bank has $1,000 in deposits. Its reserves amount to
a. $8. b. $80. c. $92. d. $920.